According to daily MF Dnes the Government might sell a small stake in CEZ (e.g. 2% or 11.8m shares). The current Government does not plant to privatize whole company. The finance minister wants to use the proceeds to support the state budget for next year.
Our view: Current Government (Social Democrats) stated before that the state should keep majority in the strategic sectors like CEZ, but minor sales are possible. The news might be negative due to risk of share overhang. We reiterate our Buy recommendation.